OREANDA-NEWS. March 30, 2011. A press conference to consider the work carried out by domestic banks with the aim of more effective provision with credits of small business and private entrepreneurship entities was held in Tashkent.

The event was organized by the Central Bank of Uzbekistan jointly with Mikrokreditbank open joint-stock commercial bank.

Today, small business and private entrepreneurship play vital role in the formation of modern structure of economy, ensuring the satisfaction of rapidly changing demand, creation of new workplaces and increase of population's incomes. President Islam Karimov noted that "it is difficult of overestimate the huge importance of this sphere for creation of a class of medium-sized proprietors as a reliable basis of modernization and renovation of the country".

It should be noted that small business and private entrepreneurship are developing dynamically in Uzbekistan. The share of this sector the country's gross domestic product (GDP) is increasing steadily from year to year. Thus, the share of small business in Uzbekistan's GDP reached 52.5% in 2010.

In order to achieve further effective development of the sphere of small business it is necessary first of all to improve the legislative base that would create a maximum favorable business environment.

It was noted during the press conference that a purposeful work is currently underway in this direction, including the development of new draft laws on private banks and financial institutions, guarantees of their activity, on credit information exchange, on pledge registrar, etc.

Moreover, a number of laws, including on credit unions, microfinance organizations and microfinancing, are being amended and corrected with the purpose of strengthening private ownership, reducing various permission norms and limitations.

In order to further step up entrepreneurship initiative the 2011 was announced in Uzbekistan as the Year of Small Business and Private Entrepreneurship, implementation of priority tasks has been planned in line with the State Program which attaches important role on financial support of small and private businesses to domestic banks.

In particular, within the Year of Small Business and Private Entrepreneurship, Uzbek banks are undertaking active measures on expansion of the access of entrepreneurs to credit resources and raw materials. Thus, commercial banks are working on further increase of the volumes of credits directed on this sphere at least 1.3 times. Special attention is paid to extending long-term resources on investment purposes, on formation of initial capital and further development of microcrediting.

This year, commercial banks of Uzbekistan will increase 1.2 times the volumes of crediting on investment purposes for modernization and technological re-equipment of production, organization of modern high-tech innovation productions, as well as increase of initial and circulating capitals.

The volumes of credits for the purchase by entrepreneurs and farmers of mini-technologies, compact equipment and leasing services will be raised by 50%; and for the purchase of equipment, raw materials, factoring services by entrepreneurs producing consumer goods – by 20%.

At the same time, Uzbek banks are planning to expand the volumes of preferential crediting for small businesses and private entrepreneurs. In particular, the volume of preferential crediting of professional colleges graduates for opening business will be increased not less than 2.5 times; and that of small and private businesses in remote and hard-to-reach areas – 1.3 times.

Commercial banks of Uzbekistan are also actively attracting preferential foreign credit lines and grants for the financing of perspective projects of small business and private entrepreneurship, which in turn assists to further expansion of foreign economic activities.

Besides, participants of the press briefing noted that there will be founded a new Projects Financing Fund with participation of commercial banks in Uzbekistan. The fund's primary task is preparation of documentation on investment projects, which will allow to cut down expenses of small businesses, raise the quality of their business plans and reduce credit allocation periods.